Social Security
| Social Security Cost-of-living adjustment (COLA) | 2011 | 2012 |
|---|
| For Social Security and Supplemental Security Income (SSI) beneficiaries | 0.00% | 3.60% |
| Tax rate–employee | 2011 | 2012 |
|---|
| FICA tax — Employee 1 | 5.65% | 7.65% |
| Social Security (OASDI) portion of tax 1) | 4.20% | 6.20% |
| Medicare (HI) portion of tax | 1.45% | 1.45% |
| Self-Employed | 13.30% | 15.30% |
| Social Security (OASDI) portion of tax 1 | 10.40% | 12.40% |
| Medicare (HI) portion of tax | 2.90% | 2.90% |
| Tax rate–self-employed | 2011 | 2012 |
|---|
| Self-Employed | 13.30% | 15.30% |
| Social Security (OASDI) portion of tax 1 | 10.40% | 12.40% |
| Medicare (HI) portion of tax | 2.90% | 2.90% |
1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a 2% reduction in the Social Security (OASDI) portion of FICA tax for 2011.
| Maximum taxable earnings | 2011 | 2012 |
|---|
| Social Security (OASDI only) | $106,800 | $110,100 |
| Medicare (HI only) | No limit | No limit |
| Quarter of coverage | 2011 | 2012 |
|---|
| Earnings required | $1,120 | $1,130 |
| Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above: | 2011 | 2012 |
|---|
| Yearly figure | $14,160 | $14,640 |
| Monthly figure | $1,180 | $1,220 |
| Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): | 2011 | 2012 |
|---|
| Yearly figure | $37,680 | $38,880 |
| Monthly figure | $3,140 | $3,240 |
| Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age | 2011 | 2012 |
|---|
| No limit on earnings | No limit on earnings |
| Social Security disability thresholds | 2011 | 2012 |
|---|
| Substantial gainful activity (SGA): for the sighted (monthly figure) | $1,000 | $1,010 |
| Substantial gainful activity: for the blind (monthly figure) | $1,640 | $1,690 |
| Trial work period (TWP) (monthly figure) | $720 | $720 |
| SSI federal payment standard | 2011 | 2012 |
|---|
| Individual (monthly figure) | $674 | $698 |
| Couple (monthly figure) | $1,011 | $1,048 |
| SSI resource limits | 2011 | 2012 |
|---|
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| SSI student exclusion limits | 2011 | 2012 |
|---|
| Monthly limit | $1,640 | $1,700 |
| Annual limit | $6,600 | $6,840 |
| Maximum Social Security benefit | 2011 | 2012 |
|---|
| Worker retiring at full retirement age (monthly figure) | $2,366 | $2,513 |
| Formula for Monthly Primary Insurance Amount (PIA) | 2011 | 2012 |
|---|
| (90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) | X=$749 Y=$4,517 | X=$767 Y=$4,624 |
Medicare
| Medicare monthly premium amounts–Part A (hospital insurance) premium | 2011 | 2012 |
|---|
| Individuals with 40 or more quarters of Medicare-covered employment | $0 | $0 |
| Individuals with 30 to 39 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance | $248 | $248 |
| Individuals with less than 30 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance | $450 | $451 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who file an individual income tax return with income that is: | 2011 | 2012 |
|---|
| Less than or equal to $85,000 | $96.40 $110.50 or $115.402 | $99.90 |
| $85,001 – $107,000 | $161.50 | $139.90 |
| $107,001 – $160,000 | $230.70 | $199.80 |
| $160,001 – $214,000 | $299.90 | $259.70 |
| Greater than $214,000 | $369.10 | $319.70 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who file a joint income tax return with income that is: | 2011 | 2012 |
|---|
| Less than or equal to $170,000 | $96.40 $110.50 or $115.40 2 | $99.90 |
| $170,001 – $214,000 | $161.50 | $139.90 |
| $214,001 – $320,000 | $230.70 | $199.80 |
| $320,001 – $428,000 | $299.90 | $259.70 |
| Greater than $428,000 | $369.10 | $319.70 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is: | 2011 | 2012 |
|---|
| Less than or equal to $85,000 | $96.40 $110.50 or $115.402 | $99.90 |
| $85,001 – $129,000 | $299.90 | $259.70 |
| Greater than $129,000 | $369.10 | $369.10 |
2 Most beneficiaries paid the same $96.40 or $110.50 premium in 2011 as they did in 2010. However, new enrollees or beneficiaries who did not have their premium withheld paid $115.40.
| Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance) | 2011 | 2012 |
|---|
| Deductible per benefit period | $1,132 | $1,156 |
| Coinsurance per day for 61st to 90th day of each benefit period | $283 | $289 |
| Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable) | $566 | $578 |
| Original Medicare plan deductible and coinsurance amounts | 2011 | 2012 |
|---|
| Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period | $141.50 | $144.50 |
| Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible | 2011 | 2012 |
|---|
| Individual pays 20 percent of the Medicare-approved amount for services after deductible is met | $162 | $140 |
Medicaid
| 2011 | 2012 |
|---|
| Monthly income threshold for income-cap states (“300 percent cap limit”) | $2,022 | $2,094 |
| Monthly maintenance needs allowance for at-home spouse | 2011 | 2012 |
|---|
| Minimum 3 | $1,822 | $1,838.75 |
| Maximum | $2,739 | $2,841 |
| Spousal resource allowance | 2011 | 2012 |
|---|
| Minimum | $21,912 | $22,278 |
| Maximum | $109,560 | $113,640 |
3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.
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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011.
